Almost every person who has recently learned about binary options (including even traders with considerable experience of trading in the Forex), refers to the possibility of earning on them skeptical.
This stems from the hype, overly lopsided describing this source of income.
Binary option trading is one of the ways to make or earn money online, it requires one to learn and acquire some trading strategies, choose a broker, demo trade, before funding a real account
The reality is that for beginners who are not familiar with the technical and fundamental analysis, count on making a profit is not necessary. At least, the chance of success is low. But those who are sufficiently prepared – completely.
Important moments of working with binary options.
Earnings on binary options involves the production of its own brand strategy. It is private, since the use of other people’s developments do not always converge with your character, preferred running time and other parameters, which may well affect the profit.
The strategy will have to include several types of transactions: fast, short, rare and long. If you are one of those people for whom the risk is unacceptable – high volatility and opened in a variety of short transaction is clearly not for you. A preferred embodiment of the transaction will be rare, calculated for a longer period of time (for longer periods easier to predict the movement of prices).
You also need to understand that a particular system is focused mainly on any particular asset. Those strategies that works well on the currency pairs may not show themselves to advantage when trading stocks. This encourages traders to analyze all the necessary trading tools offered by the broker, before forming his trading strategy.
Many trading strategies are already contained installation relating to safety and the basics of financial management, but it is not always. Usually, they contain only signals triggered in a certain place and under certain market conditions. Therefore, if you want to make your binary options trading is relatively stable and secure, you need to designate several money management rules and strictly follow them.
Many famous traders of the opinion that the number of profitable trading strategy signals and positive / negative of the original of the expectation of much irrelevant. Much more important is the right approach to risk management. And it’s hard to disagree. Effective management of resources – this is the thing that will help in the long distance if you do not make money, then at least preserve capital. Here are some simple guidelines that should be followed:
• Not to be used in one transaction more than 5% of the total amount, more than 10% during the same time passing transactions. And it does not matter whether you work with day or turbo options.
• In fact, the profit of the trader is the difference between the number of winners and the amount of losing trades. Do not try to “get even” and increase the amount of the subsequent deal. This will run the risk of incurring even greater losses.
Practice on Demo Account
Studying theory without proper securing knowledge into practice – a waste of time. You can read the book on trafficking in tens or even hundreds, and then drain your first deposit faster than the kettle on the stove to boil. The conclusion is simple: you have to train. The perfect solution for beginners in this situation is to trade on a demo (Demo) account. It is a complete analogue of the real, but does not require real money investment.
During the practice of a trader familiar with its major flaws – greed, fear, hope and the like. It should be noted that a demo account does not give all this experience to the full, so you do not risk their savings. There will train more effectively in small amounts using a real account.
Trade in small amounts or trading on a demo account – a great opportunity to try out a new trading strategy, make sure it is working. Even if you come across on the Internet on how to assure you, 100% working version, burst on the stock exchange and to put on a grand scale is not recommended. First you need to test everything, to make their own conclusions.
The psychological moment.
The presence of the trader certain psychological skills is very important. Making a binary options and financial markets do best with people who know how to control their emotions, preferring cold calculation. Greed, fear, anxiety, stress – all of which can adversely affect the decision-making in the bidding process. For example, the greedy trader who is chasing profits and, no matter what preventive factors, risks rapidly losing capital.
On the other hand, there are a number of positive emotions, the presence of which the trader is to him an additional advantage. They are a joy, anxiety (as opposed to uncontrolled fear, it helps the trader to be more prudent not to risk wasting) and the ability to maintain composure in critical situations.
Choosing a broker.
Trading binary options is carried out through intermediaries known as brokers. – Binary options brokers is one of the factors to look at for, and may be the difference between a successful binary option trader and unsuccessful trader. It is important to choose a reputable and reliable company that will faithfully fulfill their obligations.
You should start with a check from the broker license of the regulatory body, as well as comparing the quotes offered by them with the real figures on the market (unscrupulous brokers are often manipulated quotations for the purpose of further profit). To do this, run the terminal addition of any other broker, comparison of data in real time.
In addition, the important role played by the protection of the site. Agree, if attackers get information for your account and withdraw money from the account, it will be extremely disappointing. The broker must provide additional resources to protect your account – reinforced authorization, confirmation of entry via SMS, and the like, and the site itself must support secure protocol HTTPS (simple HTTP does not guarantee an adequate level of security).
Conclusion. Is it possible to make money on the binary options?
As you can see, in the binary options trading is not as simple as it is described in promotional materials and websites who want to make money on affiliate programs webmaster. The reality is that the loss of one of the exchange more than the profit from other similar transaction. To preserve your capital, should be closed with a profit of six out of ten transactions. Earnings also require the trader to 70-80% winning trades.
Such high interest rates are not possible if you rely on mere luck. This “approach the player” on the long distance is not justified, the trader clearly lose their money. Earn on binary options really, but you need to fulfill all the conditions, which were discussed in the article – to develop a high-quality trade strategy, effective capital management strategy, develop the psychological stability, a lot of practice and cooperate only with reliable brokers.
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